Forget your HISA, fill up your HSAV this winter

18 нояб.

Technical Reasons 🚀

Tight Price Range & NAV Premium: HSAV consistently trades within a small premium to its Net Asset Value (NAV), currently around 0.5%. Stability in its pricing indicates investor confidence in its performance, even amidst market fluctuations​

Uptrend Momentum: Recent fund inflows show recovery after earlier outflows, suggesting increased demand. This aligns with seasonal trends in fixed-income assets during market volatility​

Low Volatility: As a cash-equivalent ETF, HSAV’s low price volatility makes it attractive during uncertain macroeconomic conditions. Its steadiness acts as a safe harbor in rougher seas​
TRADINGVIEW

Fundamental Reasons 📊

High Yield Environment: HSAV offers a yield of around 5.1%, benefitting from Canada’s elevated interest rate regime. This makes it an appealing alternative to traditional savings accounts​

Efficient Tax Treatment: Unlike traditional dividend-paying ETFs, HSAV reinvests interest income, allowing investors to realize gains as capital appreciation, which can be more tax-efficient​

Bank Backing: Assets are deposited across major Canadian chartered banks, ensuring both safety and liquidity. The ETF’s exposure to high-quality, short-term deposits minimizes credit risk​


Potential Paths to Profit 🤑

Lowest Risk: Buy shares of HSAV outright and let the steady NAV appreciation work for you over the next month.

Leveraged Bet: For a slightly higher-risk approach, consider margin trading to amplify gains if rates or fund flows boost NAV further.

Pairs Trade: Hedge with another HISA ETF like PSA (Purpose Savings ETF), especially if you anticipate some divergence in yield spreads or premium/discount changes.

Disclaimer: We are not a brokerage or investment firm. We do not offer financial advice or investment advice and/or signals. This is not certified financial education. We offer access to the daily thought process of an individual and his experiences. We do not offer refunds. All sales are final.